Grains were modestly higher overnight trying to rebound from Tuesday losses. In outside markets, crude oil gave up most of its gains from Tuesday to move lower in Wednesday, while S&P futures were up in overnight trade,
In overnight news, Egypt’s GASC was tendering for wheat, with the lowest offer coming in at $195.54 per MT from France origin. Russia and Romania also offered wheat in the latest deal, with the US not offered in the deal.
The EPA is widely expected to increase requirements for biofuels use through 2016 due to higher total fuel. The EPA in late May proposed requiring 17.4 billion gallons of renewable fuels to be blended into motor fuels next year, up from 16.3 billion gallons this year.
The head of the company that led the breakneck expansion of Argentine soy cultivation over the last two decades said on Tuesday the country's grains output could climb by 50 percent over the next three years thanks to a change of government. Opposition leader Mauricio Macri beat ruling party candidate Daniel Scioli in Sunday's election, effectively ending an eight-year, production-sapping feud between farmers and outgoing President Cristina Fernandez, who clamped down on wheat and corn exports in a bid to curb double-digit inflation.
S&P futures (ESZ5) rose Wednesday as investors shrugged off concerns over an escalation in geopolitical tensions. Investors are likely to bet there won't be a further flare up in geopolitical tensions as long as NATO stands with Turkey. Instead, markets are more focused on the prospect of further monetary stimulus--also known as quantitative easing, or QE--at the European Central Bank's meeting next week and whether the Federal Reserve will raise interest rates in December.
Crude oil (GCLF6 / QMF6) was lower on a de-escalation of fears about the Turkey-Russia incident on Tuesday. Also, data from industry group the American Petroleum Institute on Tuesday showed that U.S. crude inventories rose by 2.6 million barrels in the week to Nov. 20 to 488.3 million, compared with analyst expectations for an increase of 1.2 million barrels.
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